So what is short selling or shorting anyway? While most experienced or veteran investors know that this is how you profit from a declining stock price, not a lot of beginners know how it works so we’ll discuss the basics of short selling here.

Just like applying for a new job or starting a new business, investing always carries risk. While you can earn lots of money from well-chosen investments, you can also choose bad ones by mistake and lose a lot. Do you prefer safety and lower volatility, or do you prefer riskier and more volatile investments that can generate more income?

Here’s a short guide on how to choose investments based on your risk tolerance.

Disclaimer: Do your research! No matter how “safe” or “good” an investment is, it’s worthless if you get scammed because you didn’t study what you’re buying!

By the way, if you don’t know what the basic investments are, we suggest that you read these articles first: